Hey everyone, this is Robert Roy, founder of WealthBuildersHQ.com, and welcome to this edition of Trade With Rob, which is for Wednesday, June 2, 2021. Hope you all had a great trading day today. Now, the markets just closed up, so I want to take a look first at the S&P 500 and see what’s going on there as we speak.
Now, if we look at the Fib for the S&P 500 – for those of you who are brand-spankin-new, Fib means Fibonacci – we look at the Fib on the S&P 500, and let’s analyze. Great V-bottom, nice move up, great V-top in there. We’ve had lots of play on the 4181, 4191, and 4200 levels. We pushed up twice into this -.136, which is the 4237 level. We put an all-time high, closing high, which is the lower blue line, and an all-time intraday high on the upper line, about 4238-ish. So, we’ve played nice on there, and all along we’ve been back and forth on these 3 lines all over again, and today we went ahead and smacked right into the -.136 yet again. So with that, overall bias is bullish on the S&P right now.
So let’s go ahead and take a look at our candidate today which is STX.
So as we look at STX, let’s go ahead and look at the Fibonacci first. Most important thing is knowing what’s going on with your Fib. Nice V-bottom, good move here, strong, bullish thrusting pattern up into the zero-line. Good fail, made it back to the .236, the hesitation point, pushed back up and exploded to this -.272 line – very nice. Nice fail back off. We pushed up to the mid-point, we’ve failed, and now we’ve now been hanging around the zero-line all over again.
So what are we looking for here? I like what happened between yesterday and today, I like the overall pattern. What I would like to see tomorrow is a move back down toward the 97.10. It doesn’t have to get all the way there, but I sure would like it to get as close as possible, but not a requirement to take the trade. And then, I want to see some kind of bounce. If we get the bounce, I’m looking at T1, target number 1 at $100. You’re going to sell half the position at the $100 point. T2, is that 103.50 level. Inside that 103.50 level is where you’re going to sell the second half of your trade.
Now, if you’re only trading one contract, T1 is your exit and you’re done. If you’re scared halfway through, T1 is your exit and you’re done. If the position goes against you, your initial stop is down here at the 95.50 level. Now, I said initial stop. If T1 is triggered, you’re going to move your stop up to breakeven, where you’re really not going to give a whole lot back, if anything at all, and you’re out of the second half of the trade and you’re good to go.